Rupee down 12 paise at 62.31 against USD

Mumbai: The rupee dropped 12 paise at 62.31 against the US dollar in early trade Tuesday at the Interbank Foreign Exchange due to appreciation of the American currency overseas.

Forex dealers said fresh demand for the dollar from importers also weighed on the local currency but a higher opening in the domestic equity market limited the rupee's losses.

The rupee had ended 30 paise higher at 62.19 against the American currency in yesterday's trade on sustained selling of dollars by banks and exporters on hopes of foreign capital inflows in view of strong equity market.

Meanwhile, the benchmark BSE Sensex rose by 105.71 points, or 0.37 percent, at 28,610.17 in early trade.